Eurozone is an unmitigated disaster
With each bond auction worse than the previous one, we're caught in an endless downward spiral.
If you know that every bond auction of almost every country in Europe is going to go badly from now on, if you know that any particular country, like Spain or Italy, has endless financing needs and no institution can afford to show that it has that paper on the books, then you are set up for an endless spiral down. You can't break it. It's as if every day a new Macondo well goes off and the only way to stop it is to let it run out.
You can see how untenable it all is just by watching the results of a given auction -- like the Spanish one this morning for 10-year bonds. The government wanted to raise 4 billion euros. There was demand for only 3.5 billion, and the interest rate skyrocketed to 6.975% from much lower levels. All-around bad. No redeeming features, except that you know this auction will fare better than the one after it.
With no plan for what to do with all of the debt to be financed, with no hope of the economy coming back soon, with no ability to put aside differences, the euro world is pretty much an unmitigated disaster. So you can see why we are totally hostage -- because as strong as our system is, the idea that there is another one that is going down the tubes pretty quickly across the ocean is very daunting.
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Now, you have to figure there is some price at which it would make sense to buy these bonds. But we know from what happened to Greece that we seem never to hit that price, and we certainly aren't going to hit it in the primary market. You would normally want to buy bonds when the economy is weak, but not when it is so weak that the issuer can't pay the coupon.
So we spiral and we spiral, with every auction now turning into a down 1% rout at a minimum, and there are auctions as far as the eye can see and not enough money from different entities to buy them all.
Ways out? Default, which would be devastating but would allow for a new beginning somewhere down the road. Restructuring, budget reform, lower standard of living, increased savings rate to buy the bonds? Obvious. But have you thought about the problems we're having here with our own debt committee?
It makes No. 1 seem more likely all the time, unless the policymakers come up with something that works. Lately, however, it seems not so much like they are squabbling as that they are recognizing that nothing is going to work, so maybe just let "it" happen, whatever the heck "it" is.
Then maybe someone will think of something.
Did I say vague, disheartening and frustrating?
PLEASE look at today's action as evidence:
cramer is wrong....gold does not protect you in down markets...
IT IS A HEDGE AGAINST INFLATION NOT FALING STOCK PRICES
Well, come on. Heck, if they offered me Cramer's job, I'd take it.
Anyway, we need the stock markets. That's where us smart folks buy Exxon, Chevron, ConocoPhillips, British Petroleum, Royal Dutch Shell, Valero. We gotta earn too don't we?
high yielders and gold will get you broke in this market
following cramer will get you broke in every market
In our last state elections here in California we voted a lot of the same idiots that put our state in the turmoil it's in back into office as well but we decided to one up every other state by re-electing a governor that already destroyed our state one time before.
It sounds like you need to be looking for another profession, one that you can warranty your opinions that you and your huge parent company publish for public consumption, for a profit. You might want to consider such a move before a group of consummers that lost their life savings acting on your advice file a multi billion dollar class action suit against you.
Have a good day.
note to capitalists everywhere
you are witnessing all the wealth in a few percent of the population while
the huge percentage is in a depression.............this is text book end stage capitalism
greece,italy,next spain,ultimately all europe,next usa.........profit by taking advantage of
the depression and its inherent volatility
or listen to cramer whine about europe and leveraged etf's while you go broke
owning his high yielders and gold
note to cramer and madoff
some of us are smart enough not to be scammed
How many times can you rob Peter to pay Paul?
Will the Radical Liberal Socialist Agenda that is bringing down Europe also happen here?
Have Government Ponzie schemes banckrupted our Free Enterprise Capitalist Economy?
Is it now even TOO LATE to re-elect no one?
You can bet whatever you have left in your house on it!
How can we have become so stupid to allow the economically uneducated masses to become the majority?
In NJ - the most politically corrupt and highest taxed State in the Nation - the same voters who elected Christy also RE-SLECTED the entire political incumbancy that IS the problem.
Talk about uneducated hypoctites!
The Radical Liberal Socialist Agenda has suceeded in perverting our education System into graduates (ignorant of economic principles) that vote for false promises.
There are none so blind, as those that will not see.
the euro world is pretty much an unmitigated disaster.........because as strong as our system isThe eurozone is not a disaster, it's a prime example of economic justice. It proves that socialism only works until you run out of other people's money. Other people, Germans, are now saying enough is enough. It's not Germany's responsibility to take care of the Greeks, Italians and Spaniards. Guess what? Our system is pretty much a copy of theirs lagging by about 10-20 years only we had the ability to keep printing currency and dumping it on the world markets. Printing more money (QE) is only delaying the real solution of matching revenues to spending. Stealing from people that paid for medical and retirement insurance is not the solution either. Quit whining and grow up.
Cramer; vague, disheartening and frustrating is an understatement, one can not help but emphasize with the premise of the "occupy" not the tactics nor even close, the current climate, but their frustration. It is not that there are the Rich, but that too many of the Rich have obtained it by cheating, deception, and fraud,...our government leadership seems hell bent on controlling power at all cost, and do not give a damn about americans. They are to often in bed with the very cheaters; and both groups, repeatedly have the audacity to justify their lack of integrity as within the law...Then Change it, so that it is not so self serving...
Insider knowledge, privilege, and special rules for the Rich, Powerful and Famous, increasing their wealth, that is the true rule of life, MONEY...The true frustration is that we the people have nowhere to turn. And, one can not help to feel like while the entire world economy is going to hell in a basket, the Rich are buying up everything they can. It reminds me of the movie "Its a wonderful life" When the common folk run on Bailey Bank, George Bailey rails, "Potter isn't selling, he's buying, 20 cents on the dollar"...We have become a Nation of "where everything goes, everything will".
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